Central Bank Loosen Ireland's Mortgage Rules

Wednesday, 19 October 2022 09:48

House-hunters can borrow up to four times their incomes

First time buyers will be able to borrow up to four times their gross income, as part of new changes to mortgage rules announced in the past hour.

From January 2023, loan-to-values for second and subsequent buyers will increase by 10%, to 90%.

Meaning that cohort of people will need to have a minimum of 10% deposit for a property, the same amount as first time buyers.

The definition of first time buyers will also change to include people who are divorced, separated or have undergone bankruptcy.

Personal Finance Editor with the Irish Independent, Charlie Weston says it comes during very high house price inflation already:

Giving people an additional few thousand euro to buy a house, is the wrong way to tackle skyrocketing prices.

That's according to the founder of the Consumer website Ask About Money.

Ask About Money's Brendan Burgess does not think it's a good move, and will only lead to higher house prices:

Public Expenditure Minister, Michael McGrath, says something needed to change meet continuous inflationary costs:

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